26 USC § 4701 - Tax on issuer of registration-required obligation not in registered form

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(a) Imposition of tax

In the case of any person who issues a registration-required obligation which is not in registered form, there is hereby imposed on such person on the issuance of such obligation a tax in an amount equal to the product of—

(1) 1 percent of the principal amount of such obligation, multiplied by

(2) the number of calendar years (or portions thereof) during the period beginning on the date of issuance of such obligation and ending on the date of maturity.

(b) Definitions

For purposes of this section—

(1) Registration-required obligation

The term “registration-required obligation” has the same meaning as when used in section 163 (f), except that such term shall not include any obligation required to be registered under section 149 (a).

(2) Registered form

The term “registered form” has the same meaning as when used in section 163 (f).

Source

(Added Pub. L. 97–248, title III, § 310(b)(4)(A),Sept. 3, 1982, 96 Stat. 598; amended Pub. L. 99–514, title XIII, § 1301(j)(5),Oct. 22, 1986, 100 Stat. 2657; Pub. L. 111–147, title V, § 502(e),Mar. 18, 2010, 124 Stat. 108.)

Amendment of Subsection (b)(1)

Pub. L. 111–147, title V, § 502(e), (f),Mar. 18, 2010, 124 Stat. 108, provided that, applicable to obligations issued after the date which is 2 years after Mar. 18, 2010, subsection (b)(1) of this section is amended to read as follows: (1) Registration-required obligation (A) In general

The term “registration-required obligation” has the same meaning as when used in section 163 (f), except that such term shall not include any obligation which—

(i) is required to be registered under section 149 (a), or (ii) is described in subparagraph (B). (B) Certain obligations not included

An obligation is described in this subparagraph if—

(i) there are arrangements reasonably designed to ensure that such obligation will be sold (or resold in connection with the original issue) only to a person who is not a United States person, (ii) interest on such obligation is payable only outside the United States and its possessions, and (iii) on the face of such obligation there is a statement that any United States person who holds such obligation will be subject to limitations under the United States income tax laws.

Amendments

1986—Subsec. (b)(1). Pub. L. 99–514substituted “section 149 (a)” for “section 103 (j)”.

Effective Date of 2010 Amendment

Amendment by Pub. L. 111–147applicable to obligations issued after the date which is 2 years after Mar. 18, 2010, see section 502(f) ofPub. L. 111–147, set out as a note under section 149 of this title.

Effective Date of 1986 Amendment

Amendment by Pub. L. 99–514applicable to bonds issued after Aug. 15, 1986, except as otherwise provided, see sections 1311 to 1318 ofPub. L. 99–514, set out as an Effective Date; Transitional Rules note under section 141 of this title.

Effective Date

Section applicable to obligations issued after Dec. 31, 1982, with an exception for certain warrants, see section 310(d)(1), (3) ofPub. L. 97–248, set out as an Effective Date of 1982 Amendment note under section 103 of this title.

The table below lists the classification updates, since Jan. 7, 2011, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.

The most recent Classification Table update that we have noticed was Friday, May 13, 2011

An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.

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"nt ed change" and "ed change" - See the Editorial Classification Change Table [pdf].

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26 USC	Description of Change	Session Year	Public Law	Statutes at Large

26 USC § 4701 - Tax on issuer of registration-required obligation not in registered form

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